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Divgi Torqtransfer Systems IPO

Divgi Torqtransfer Systems IPO

  • Status: Closed
  • RHP:
  • ₹ 14,000 / 25 shares

    Minimum Investment

IPO Details

  • Open Date

    01 Mar 2023

  • Close Date

    03 Mar 2023

  • IPO Price Range

    ₹ 560 to ₹ 590

  • IPO Size

    ₹ 180.00 Cr

  • Listing Exchange

    BSE, NSE

  • Listing Date

    14 Mar 2023

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Divgi Torqtransfer Systems IPO Subscription Status

Last Updated: 06 March 2023 7:43 PM by 5Paisa

Divgi TorqTransfer Systems IPO opens on 1st March, 2023, and closes on 3rd March, 2023. The issue entails an offer for sale of 3,934,243 equity shares which aggregates the issue size to Rs. 180 cr. The company has fixed the lot size to 25 shares per lot and the price range is fixed between Rs. 560 – Rs. 590 per share. The issue will be listed on the exchanges on 14th March while the shares will be allotted on 9th March. Inga Ventures Pvt. Ltd. and Equirus Capital Ltd. are the lead managers to the issue. 

Objective of the Divgi TorqTransfer Systems IPO

The net proceeds from the issue will be utilised towards:

1.    Funding capital expenditure requirements for the purchase of equipment/machineries of the manufacturing facilities

2.    General corporate purposes

Divgi TorqTransfer Systems IPO Video

Divgi Torqtransfer Systems is engaged in the business as an automotive component entity. They are among the very few automotive component entities in India with the capability to develop and provide system-level transfer cases, torque couplers, and dual-clutch automatic transmission solutions. 

It manufactures and supplies a variety of products under the broad categories of:

(i)    torque transfer systems (which includes fourwheel-drive (“4WD”) and all-wheel-drive (“AWD”) products) 
(ii)    synchronizer systems for manual transmissions and DCT
(iii)    components for the above-mentioned product categories for torque transfer systems and synchronizer systems in manual transmission, DCT, and EVs.

The company has also developed:

(i)    transmission systems for EVs
(ii)    (ii) DCT systems
(iii)    rear wheel drive manual transmissions

The company is in works to launch domestically manufactured DCT systems for the Indian market. Therefore, we will be the only manufacturer of DCT systems in India.

It has three manufacturing and assembling facilities across India located at Sirsi in Karnataka, and Shivare and Bhosari near Pune in Maharashtra, with the manufacturing facilities at Shivare and Bhosari being strategically located in proximity to its key clients, and one under-construction manufacturing facility located at Shirwal, Maharashtra.

Check Out Web-Stories on Divgi Torqtransfer Systems IPO

Profit and Loss

Balance Sheet

Particulars (in Rs. Crores) FY22 FY21 FY20
Revenue 233.78 186.58 159.07
EBITDA 65.61 51.90 36.94
PAT 46.15 38.04 28.04
Particulars (in Rs. Crores) FY22 FY21 FY20
Total Assets 405.37 362.88 303.70
Share Capital 13.77 6.88 6.02
Total Borrowings 0.12 0.26 50.41
Particulars (in Rs. Crores) FY22 FY21 FY20
Net cash generated from / (used in) operating activities 51.1 27.0 38.3
Net cash from / (used in) investing activities -51.1 -24.6 -24.3
Net cash flow from / (used in) financing activities -2.9 -2.6 -5.8
Net increase (decrease) in cash and cash equivalents -2.9 -0.2 8.3

Peer Comparison

Name of the Company Basic EPS NAV PE RoNW%
Divgi TorqTransfer Systems Limited 16.76 123.5 NA 13.57%
Sona BLW Precision Forgings Limited 6.22 34.23 73.52 18.07%
Precision Wires India Limited 413.1 3,621.05 41.44 11.41%
ZF Commercial Vehicle Control Systems India Limited 74.9 1,114.57 124.83 6.72%
Sundram Fasteners Limited 21.74 125.46 45.1 17.52%
Endurance Technologies Limited 32.75 278.68 44.61 11.75%


Strengths

•    One of the very few suppliers in India having the capability to develop and provide system level transfer case, torque coupler, DCT solutions and transmission systems for EVs across a wide array of automotive vehicles and geographies, with leadership across select product categories
•    It has strong and well-established relationships with several marquee domestic and global OEMs in the automobile sector such as Tata Motors, Mahindra & Mahindra and with global suppliers such as BorgWarner
•    Strategically located manufacturing facilities capable of producing high precision components meeting system-level design intent
 

Risks

•    The business largely depends upon the top five customers, and the loss of such customers or a significant reduction in purchases by such customers will affect the business
•    A disruption in the supply of these key components and raw materials and failure of our suppliers and third- party logistics service providers to meet their obligations
•    Inability to operate and grow the business in certain countries that it exports its products in
•    Volatility in the prices or availability of raw materials and components
•    Delays or defaults in customer payments and receivables
 

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FAQs

The price for the Divgi Torqtransfer Systems IPO is set at Rs. 560 - 590 per share

The Divgi Torqtransfer Systems IPO opens on 1st March and closes on 3rd March.

The Divgi Torqtransfer Systems IPO comprises of an Offer for Sale of of 3,934,243 equity shares which aggregates the issue size to Rs. 180 cr.

The allotment date of Divgi Torqtransfer Systems IPO is set for 9th March

The Divgi Torqtransfer Systems IPO will be listed on 14th March.

The Divgi Torqtransfer Systems IPO lot size is 35 shares. A retail-individual investor can apply for up to 13 lots (325 shares or ₹191,750).

The net proceeds from the issue will be used for: 

1.    Funding capital expenditure requirements for the purchase of equipment/machineries of the manufacturing facilities
2.    General corporate purposes
 

To apply for the IPO, follow the steps given below

•    Login to your 5paisa account and select the issue in the current IPO section
•    Enter the number of lots and price at which you wish to apply for
•    Enter your UPI ID and click on submit. With this, your bid will be placed with the exchange
•    You will receive a mandate notification to block funds in your UPI app
 

Divgi Torqtransfer Systems IPO is promoted by Jitendra Bhaskar Divgi, Hirendra Bhaskar Divgi and Divgi Holdings Private Limited.

Inga Ventures Pvt. Ltd. and Equirus Capital Ltd. are the book running lead managers to the Divgi Torqtransfer Systems IPO.